5 U.S.C. § 8714c — Optional life insurance on family mem-

Page 1231 TITLE 5—GOVERNMENT ORGANIZATION AND EMPLOYEES § 8714c REPORT TO CONGRESS Pub. L. 105–311, § 7(b), Oct. 30, 1998, 112 Stat. 2953, re- quired the Office of Personnel Management to submit, not later than 3 years after Oct. 30, 1998, a report to Congress on additional optional insurance provided under subsec. (c)(5) of this section. § 8714c. Optional life insurance on family mem- bers (a) Under the conditions, directives, and terms specified in sections 8709 through 8712 of this title, the Office of Personnel Management, with- out regard to section 6101(b) to (d) of title 41, may purchase a policy which shall make avail- able to each employee insured under section 8702 of this title amounts of optional life insurance (without accidental death and dismemberment insurance) on the employee’s family members. (b)(1) The optional life insurance on family members provided under this section shall be made available to each eligible employee who has elected coverage under this section, under conditions the Office shall prescribe, in mul- tiples, at the employee’s election, of 1, 2, 3, 4, or 5 times— (A) $5,000 for a spouse; and (B) $2,500 for each child described under sec- tion 8701(d). (2) An employee may reduce or stop coverage elected pursuant to this section at any time. (c)(1) Except as otherwise provided in this sub- section, the optional life insurance on family members shall stop at the earlier of the employ- ee’s death, the employee’s separation from the service, or 12 months after discontinuance of pay, subject to a provision for temporary exten- sion of life insurance coverage and for conver- sion to individual policies of life insurance under conditions approved by the Office. (2) In the case of any employee who retires on an immediate annuity or who becomes entitled to receive compensation under subchapter I of chapter 81 of this title because of disease or in- jury to the employee and who has had in force insurance under this section for no less than— (A) the 5 years of service immediately pre- ceding the date of retirement or entitlement to compensation, or (B) the full period or periods of service dur- ing which the insurance was available to the employee, if fewer than 5 years, optional life insurance on family members may be continued under the same conditions as pro- vided in section 8714b(c)(2) through (4). (d)(1) During each period in which the optional life insurance on family members is in force the full cost thereof shall be withheld from the em- ployee’s pay. During each period in which an employee continues optional life insurance on family members after retirement or while in re- ceipt of compensation under subchapter I of chapter 81 of this title because of disease or in- jury to the employee, as provided in subsection (c) of this section, the full cost shall be withheld from the annuity or compensation, except that, beginning at the end of the calendar month in which the former employee becomes 65 years of age, the optional life insurance on family mem- bers shall be without cost to the employee. Not- withstanding the preceding sentence, the full cost shall be continued after the calendar month in which the former employee becomes 65 years of age if, and for so long as, an election under this section corresponding to that described in section 8714b(c)(3)(B) remains in effect with re- spect to such former employee. Amounts so withheld shall be deposited, used, and invested as provided in section 8714 of this title and shall be reported and accounted for together with amounts withheld under section 8714a(d) of this title. (2) If an agency fails to withhold the proper cost of optional life insurance on family mem- bers from an individual’s salary, compensation, or retirement annuity, the collection of amounts properly due may be waived by the agency if, in the judgment of the agency, the in- dividual is without fault and recovery would be against equity and good conscience. However, if the agency so waives the collection of any un- paid amount, the agency shall submit an amount equal to the uncollected amount to the Office for deposit to the Employees’ Life Insur- ance Fund. (3) Notwithstanding paragraph (1), an em- ployee who is subject to withholdings under this subsection and whose pay, annuity, or com- pensation is insufficient to cover such withholdings may nevertheless continue op- tional life insurance on family members if the employee arranges to pay currently into the Employees’ Life Insurance Fund, through the agency or retirement system that administers pay, annuity, or compensation, an amount equal to the withholdings that would otherwise be re- quired under this subsection. (e) The cost of the optional life insurance on family members shall be determined from time to time by the Office on the basis of the employ- ee’s age relative to such age groups as the Office establishes under section 8714a(e) of this title. (f) The amount of optional life insurance which is in force under this section on a family member of an employee or former employee on the date of the death of the family member shall be paid, on the establishment of a valid claim by the employee, to such employee or, in the event of the death of the employee before payment can be made, to the person or persons entitled to the group life insurance in force on the employee under section 8705 of this title. (Added Pub. L. 96–427, § 8(a), Oct. 10, 1980, 94 Stat. 1836; amended Pub. L. 98–353, title II, § 206, as amended by Pub. L. 99–336, § 7(1), June 19, 1986, 100 Stat. 639; Pub. L. 99–335, title II, § 207(k)(5), June 6, 1986, 100 Stat. 598; Pub. L. 99–336, § 7(1), June 19, 1986, 100 Stat. 639; Pub. L. 105–311, §§ 6(4), 8, Oct. 30, 1998, 112 Stat. 2951, 2953; Pub. L. 111–350, § 5(a)(14), Jan. 4, 2011, 124 Stat. 3842.) Editorial Notes AMENDMENTS 2011—Subsec. (a). Pub. L. 111–350 substituted ‘‘section 6101(b) to (d) of title 41’’ for ‘‘section 5 of title 41’’. 1998—Subsec. (b). Pub. L. 105–311, § 8(a), amended sub- sec. (b) generally. Prior to amendment, subsec. (b) read as follows: ‘‘The optional life insurance on family mem- bers provided under this section shall be made avail- able to each eligible employee who elects coverage under this section, under conditions the Office shall Page 1232 TITLE 5—GOVERNMENT ORGANIZATION AND EMPLOYEES § 8714d prescribe, in the amount of $5,000 for a spouse and $2,500 for each child described in section 8701(d). The em- ployee may stop coverage elected under this section at any time.’’ Subsec. (c)(2). Pub. L. 105–311, § 8(b)(1), substituted ‘‘section 8714b(c)(2) through (4)’’ for ‘‘section 8714b(c)(2) of this title’’. Subsec. (d)(1). Pub. L. 105–311, § 8(b)(2), inserted before last sentence ‘‘Notwithstanding the preceding sentence, the full cost shall be continued after the calendar month in which the former employee becomes 65 years of age if, and for so long as, an election under this sec- tion corresponding to that described in section 8714b(c)(3)(B) remains in effect with respect to such former employee.’’ Subsec. (d)(3). Pub. L. 105–311, § 6(4), added par. (3). 1986—Subsec. (c)(1). Pub. L. 99–336 amended Pub. L. 98–353, § 206, generally. See 1984 Amendment note below. Pub. L. 99–335 amended par. (1) generally, effective Jan. 1, 1977. Prior to such effective date, par. (1) read as follows: ‘‘Optional life insurance on family members shall stop at the earlier of the employee’s death, the employee’s separation from the service, 12 months after discontinuance of pay, or the employee’s entry on ac- tive duty or active duty for training, as provided in sec- tions 8706(a) and 8706(c) of this title, subject to provi- sion for a 31-day temporary extension of insurance cov- erage and for conversion to individual policies under conditions approved by the Office. Justices and judges of the United States described in section 8701(a)(5)(ii) and (iii) of this chapter are deemed to continue in ac- tive employment for purposes of this chapter.’’ 1984—Subsec. (c)(1). Pub. L. 98–353, § 206, as amended generally by Pub. L. 99–336, inserted sentence which deemed justices and judges described in section 8701(a)(5)(ii) and (iii) of this chapter to continue in ac- tive employment for purposes of this chapter. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1998 AMENDMENT Amendment by section 6(4) of Pub. L. 105–311 effective on the first day of the first applicable pay period begin- ning on or after Oct. 30, 1998, and amendment by sec- tion 8 of Pub. L. 105–311 effective on the first day of the first pay period which begins on or after the 180th day following Oct. 30, 1998, or on any earlier date that the Office of Personnel Management may prescribe, see sec- tion 11(d), (f) of Pub. L. 105–311, set out as a note under section 8701 of this title. EFFECTIVE DATE OF 1986 AMENDMENT Amendment by Pub. L. 99–335 effective Jan. 1, 1987, see section 702(a) of Pub. L. 99–335, set out as an Effec- tive Date note under section 8401 of this title. EFFECTIVE DATE OF 1984 AMENDMENT Amendment by Pub. L. 98–353, § 206, as amended gen- erally by Pub. L. 99–336, § 7(1), applicable to any justice or judge who retires under 28 U.S.C. 371(a) or (b) or 372(a) on or after January 1, 1982, see section 207 of Pub. L. 98–353, as amended generally by Pub. L. 99–336, § 7(2), set out as a note under section 8706 of this title. EFFECTIVE DATE Section effective on first day of first pay period which begins on or after 180th day following Oct. 10, 1980, or on any earlier date that Office may prescribe which is at least 60 days after Oct. 10, 1980, and shall have no effect in case of an employee who died, was fi- nally separated, or retired before effective date, see section 10(d) of Pub. L. 96–427 set out as an Effective Date of 1980 Amendment note under section 8701 of this title. § 8714d. Option to receive ‘‘living benefits’’ (a) For the purpose of this section, an indi- vidual shall be considered to be ‘‘terminally ill’’ if such individual has a medical prognosis that such individual’s life expectancy is 9 months or less. (b) The Office of Personnel Management shall prescribe regulations under which any indi- vidual covered by group life insurance under sec- tion 8704(a) may, if such individual is terminally ill, elect to receive a lump-sum payment equal to— (1) the full amount of insurance under sec- tion 8704(a) (or portion thereof designated for this purpose under subsection (d)(4)) which would otherwise be payable under this chapter (on the establishment of a valid claim)— (A) computed based on a date determined under regulations of the Office (but not later than 30 days after the date on which the in- dividual’s application for benefits under this section is approved or deemed approved under subsection (d)(3)); and (B) assuming continued coverage under this chapter at that time; reduced by (2) an amount necessary to assure that there is no increase in the actuarial value of the benefit paid (as determined under regulations of the Office). (c)(1) If a lump-sum payment is taken under this section— (A) no insurance under the provisions of sec- tion 8704(a) or (b) shall be payable based on the death or any loss of the individual involved, unless the lump-sum payment represents only a portion of the total benefits which could have been taken, in which case benefits under those provisions shall remain in effect, except that the basic insurance amount on which they are based— (i) shall be reduced by the percentage which the designated portion comprised rel- ative to the total benefits which could have been taken (rounding the result to the near- est multiple of $1,000 or, if midway between multiples of $1,000, to the next higher mul- tiple of $1,000); and (ii) shall not be subject to further adjust- ment; and (B) deductions and withholdings under sec- tion 8707, and contributions under section 8708, shall be terminated with respect to such indi- vidual (or reduced in a manner consistent with the percentage reduction in the individual’s basic insurance amount, if applicable), effec- tive with respect to any amounts which would otherwise become due on or after the date of payment under this section. (2) An individual who takes a lump-sum pay- ment under this section (whether full or partial) remains eligible for optional benefits under sec- tions 8714a–8714c (subject to payment of the full cost of those benefits in accordance with appli- cable provisions of the section or sections in- volved, to the same extent as if no election under this section had been made). (d)(1) The Office’s regulations shall include provisions regarding the form and manner in which an application under this section shall be made and the procedures in accordance with which any such application shall be considered.